Recently, the momentum in the gold market has shifted noticeably: while central banks have dialed back their purchases, interest from gold-backed cryptocurrencies and exchange-traded funds has ballooned. Net minting volume of precious metal-backed tokens has soared, hitting a three-year peak.
According to rwa.xyz data, over $80 million worth of these digital tokens were issued in the past month alone. This surge fueled a 6% climb in the sector’s market capitalization, now standing at $1.43 billion. Simultaneously, monthly transfer volumes skyrocketed by 77% to reach $1.27 billion, signaling a sharp revival in appetite for digital gold assets.
Converging Trends in the Gold Landscape
The upswing in token minting reflects broader patterns unfolding across the gold ecosystem.
According to the World Gold Council’s most recent figures, gold demand during Q1 reached 1,206 tonnes, marking a subtle 1% increase year-over-year — the strongest opening quarter since 2016. This uptick comes despite central bank acquisitions falling from 365 tonnes in Q4 to 244 tonnes recently.
Investment vehicles like gold ETFs have emerged as pivotal players driving this change. Demand from these funds more than doubled, climbing to 552 tonnes, indicating a renewed investor pivot toward gold — an arena historically dominated by central banks.
These inflows contributed to pushing the quarterly average price of gold to an unprecedented $2,860 per ounce—up 38% compared to the previous year. However, last week saw a 2.35% pullback in prices after a year-to-date rally of 23.5%, even as risk-on assets, including cryptocurrencies, gained ground. At present, spot gold is trading near $3,240 per ounce.
Demand Dynamics Beyond Traditional Holdings
While jewelry demand stumbled, sinking to levels reminiscent of the pandemic period, appetite for bars and coins remained robust—particularly across the Chinese market, where physical gold continues to command strong preference.
Key Figures at a Glance
| Gold Demand (Q1) | 1,206 tonnes | +1% YoY | Since 2016 |
| Central Bank Purchases | 244 tonnes | ↓ from 365 tonnes (Q4) | Recent quarter |
| ETF Investment Demand | 552 tonnes | +100%+ | Year-over-year |
| Market Cap of Gold-Backed Tokens | $1.43 billion | +6% | Last month |
| Monthly Transfer Volume (Tokens) | $1.27 billion | +77% | Last month |
| Average Gold Price (Quarterly) | $2,860/oz | +38% YoY | Most recent quarter |
